EVN Company presentation. May 2013

Transcription

1 EVN Company presentation May

2 Agenda 2 EVN at a glance Investments and projects Financial performance Q /13 Financial performance 2011/12 222

3 EVN at a glance EVN profile Leading integrated energy and environmental services company serving customers in Lower Austria, SEE and CEE Key business areas: electricity, natural gas, heating, drinking water supply, wastewater treatment, waste incineration Group net profit: EUR 194.9m (+1.4%) Net cash flow from operating activities: EUR 461.0m ( 11.7%) Employees: 7,502; ~67% abroad (as per 12/31/2012) Shareholder structure (as per 12/31/2012) Free float (incl. shares held by employees) 15.8% Own shares 0.7% Energie Baden- Württemberg AG (EnBW) 32.5% NÖ Landes- Beteiligungsholding GmbH 51.0% Rating: A3, stable (Moody s) BBB+, stable (Standard & Poor s) EVN at a glance 33

4 EVN at a glance Contribution by business segments Revenues 1) EBITDA 1)2) Environmental Services 11% Generation 4% Energy Trade and Supply 37% Environmental Services 16% Generation 12% Energy Trade and Supply 7% Energy Supply SEE 32% EUR 2,846.5m Energy Supply SEE 23% EUR 474.5m Network Infrastructure Austria 16% Network Infrastructure Austria 42% 1) Pre consolidation 2) Figures have been adjusted due to IAS 19 EVN at a glance 44

5 EVN at a glance Key metrics Generation Electricity generation capacity: 1,994 MW Renewable: 508 MW Thermal: 1,487 MW Production mix: Renewable: 25% Thermal: 75% Coverage ratio: 15.5% Networks Electricity: 134,813 km Natural gas: 13,731 km Heating: 645 km Energy supply Customers: 3.7 million Sales volume: 29.3 TWh Environmental Services 0.5 million drinking water customers in Lower Austria Waste incineration plants: 500,000 t p.a. in Lower Austria 360,000 t p.a. in Moscow More than 100 drinking and wastewater plants servicing ~16 million customers throughout Europe EVN at a glance 555

6 EVN at a glance Active in 21 countries 6 Key geographic areas Lower Austria and Germany South Eastern Europe (SEE) Central and Eastern Europe (CEE) Activities Lower Austria Energy business: full integration Environmental services business: drinking water supply, wastewater treatment, waste incineration SEE Electricity and heat distribution as well as natural gas operation CEE Drinking water supply, wastewater treatment and waste incineration 6 EVN at a glance 66

7 EVN at a glance Business segments Generation Production: 2,803 GWh Efficient and flexible thermal fleet (coal, natural gas, oil) Sizeable renewable energy portfolio Projects in Austria, Germany, Albania and Bulgaria Energy Supply South East Europe Electricity distribution and supply business in Bulgaria and Macedonia ~14 TWh sales volumes Heat generation and sales in Bulgaria Project to build/operate natural gas network in Croatia Energy Trade and Supply Sourcing of electricity and primary energy Sales to end customers in Austria and Germany Trading on wholesale markets Heat generation and sales in Austria ~15 16 TWh energy sales volumes p.a. Environmental Services Austria: drinking water supply, wastewater treatment, waste incineration International project business: drinking water supply, wastewater treatment, waste incineration 18 Central and Eastern and SEE countries Network Infrastructure Austria Electricity and gas distribution networks in Lower Austria Cable TV and telecommunication networks in Lower Austria and Burgenland Strategic Investments and Other Business Verbund RAG Burgenland Holding EVN at a glance 777

8 EVN at a glance EVN strategic priorities 8 Topic 1 Market leadership in Austrian supply business Topic 2 Selective generation asset growth Topic 3 Required proven upside in SEE Topic 4 Track record in environmental services business Topic 5 Capitalise on strategic investments Topic 6 Capital discipline and credit rating EVN at a glance 88

9 EVN at a glance 1. Majority of revenues and EBITDA generated in domestic and regulated businesses 9 Revenue breakdown by segments 1) Geographic revenue breakdown 2) Energy Supply SEE 32% Environmental Services 11% Generation 4% EUR 2,846.5m Energy Trade and Supply 37% EURm 3,000 2,500 2,000 1,500 1, , , , % 31% 34% 7% 9% 8% 62% 60% 58% International: 42% Network Infrastructure Austria 16% Share of regulated EBITDA 3)4) Geographic EBITDA breakdown 2)4) 0 09/10 10/11 11/12 Austria CEE SEE EURm % 17% 44% % 36% 18% 23% 46% 41% Regulated: 59% EURm % 24% 16% 6% 5% 8% 79% 76% 69% 0 09/10 10/11 11/12 Unregulated business Regulated international business Regulated domestic business 0 09/10 10/11 11/12 Austria CEE SEE 1) Pre consolidation adjustments 2) International business includes Energy Supply South East Europe and the international project business of the Environmental Services segment 3) The regulated domestic business includes mainly the Network Infrastructure Austria (excl. cable and telecommunication activities) and the regulated international business Energy Supply South East Europe 4) Figures for 2011/12 have been adjusted due to IAS 19 EVN at a glance 9

10 1. EVN European utility but a bit different Hydro- & wind portfolio Biomass portfolio EVN s core competence is the efficient operation and constant upgrading of grid business (electricity, gas, heat, water) Strong, de-centralised portfolio: Hydropower (Austria) 5 storage and 67 run-of-river hydropower plants Purchasing rights from hydropower plants along the Danube, Melk, Greifenstein and Freudenau Investment in hydropower plant Nussdorf and Verbund-Innkraftwerke Windpower 12 windparks Investments: EUR 265m Biomass 64 biomassplantsin LowerAustria Largest supplier of natural heat in Austria Investments: EUR 170.0m EVN at a glance 10

11 EVN at a glance 1. Regulated business in Austria 11 Network Electricity Gas Comments Regulatory authority E-Control GmbH E-Control GmbH Start of the regulatory period 1/1/2010 1/1/2013 Next regulatory adjustment 1/1/2014 1/1/2018 Adjustment of WACC and productivity factors Duration of the regulatory period 4 years 5 years Regulatory method Revenue caps Revenue caps RAB (EUR m) Not public Not public Annual investments are added to the RAB in the following year WACC (pre-tax, nominal) 7.0% 6.4% Set for length of regulatory period General productivity factor 1.95% 1.95% Electricity: 50% of the achieved productivity increases are passed on to end customers during the regulatory period Natural gas: Gains from cost reductions remain with the company during the regulatory period Company specific productivity factor 0.25% 0.00% Additional X factor is company specific Inflation Set annually Set annually Network operator price index consists of consumer (30%) and building price (40%) indices as well as wage increase index Source: E-Control 2010, company information EVN at a glance 11

12 EVN at a glance 2. Increase coverage ratio and diversify generation portfolio 12 Coverage ratio 70% 60% 50% 40% 30% 68.8% Market entrance Bulgaria Market entrance Macedonia Increase coverage ratio in the mid-term to 40% on Group level Hold coverage ratio in CWE Increase coverage ratio in SEE 20% 10% 39.5% 29.2% 19.1% 20.8% 17.8% 18.2% 16.3% 15.5% 40.0% 0% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 midterm Generation mix 100% 80% 60% 40% 20% 23% 77% 32% 32% 36% 36% 35% 68% 68% 64% 64% 65% 46% 50% 54% 50% Diversify generation portfolio Increase renewable generation up to 50% of output Focus on wind in Austria and CWE Focus on hydro in SEE 0% 05/06 06/07 07/08 08/09 09/10 10/11 11/12 long-term Conventional power generation Renewables EVN at a glance 12

13 EVN at a glance 2. Ongoing projects to increase generation output 13 (Pro-rata installed capacity, MW) 1, , ,410 1, ,626 2,739 2,704 Status quo 2011/12 Walsum, Germany (financed) Ashta, Albania (financed) 1) 2) Wind parks (partly financed) Gorna Arda, Bulgaria Project Walsum Ashta 1) Wind parks 2) Gorna Arda Fuel type Hard coal Hydro Wind Hydro Pro-rata investment (EURm) Expected COD ) Start of the trail operations of the first part of Ashta in Q3 2011/12; second section will likely come on stream in March ) Includes Austrian wind parks. EVN at a glance 13

14 EVN at a glance 3. Regulated business in South Eastern Europe 14 Electricity Regulatory authority Bulgaria (electricity) SEWRC (State Energy and Water Regulatory Commission) Bulgaria (heat) SEWRC (State Energy and Water Regulatory Commission) Macedonia (electricity) ERC (Energy Regulatory Commission) Start of the regulatory period 7/1/2008 7/1/2012 1/1/2012 Next regulatory adjustment 7/1/2013 7/1/2014 1/1/2015 Duration of the regulatory period 5 years 2 years 3 years Regulatory method 1) Revenue caps Revenue caps Revenue caps RAB (EURm) Not public Not public Not public WACC (pre-tax, nominal) 12.0% 7.0% 6.7% Recognised network losses 15.0% No 14.0% Productivity factor Yes Yes No Investment factor 2) Yes Yes Yes 1) The revenue caps comprise the recognised operating expenses, the amortisation and depreciation as well as the recognised return on the RAB. 2) Annual review and approval of company s investment plans by the regulatory authority. Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC) EVN at a glance 14

15 EVN at a glance 3. Regulated business in South Eastern Europe 15 Bulgaria Market entry in 2005 Plovdiv EVN buys energy from public provider at regulated prices and sells to end-customers at regulated prices Bulgaria District heating plant in Plovdiv Macedonia Entire electricity distribution network run by EVN Macedonia Market entry in 2006 Croatia Project to build and operate natural gas network in Zadar, Sibenik and Split Customer potential: 130,000 households Skopje EVN at a glance 15

16 EVN at a glance 3. Upside potential from South Eastern European market development 16 Illustrative electricity sales volumes per customer 1) 100% 80% 60% 80% 100% Electricity prices for households (EUR cent/kwh) Improvement of grid efficiency 40% 54% 10 20% 0% EVN in Bulgaria EVN in Macedonia EVN in Lower Austria 5 0 Bulgaria Macedonia Czech Republic Austria Germany 2008/ / /11 EU-27 17% 15% 24% 22% 21% 14% 13% 13% 17% 12% 16% 18% 18% 12% 12% 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Grid losses, Bulgaria Grid losses, Macedonia 16 1) In %, basis: Lower Austria = 100% EVN at a glance 16

17 EVN at a glance 4. Competitive business model through integration of environmental services business 17 Successful participation in 100 projects in 18 countries since 1983 Strong demand for infrastructure projects set to continue Total order volume of EUR 0.6bn with attractive return potential from international projects Underpinned by stable contributions from drinking water supply and wastewater treatment businesses EVN at a glance 17

18 EVN at a glance 5. Capitalising on strategic investments and investments in equity accounted investees % # 1 electricity producer in Austria with 8.6 GW installed capacity 50.03% # 2 oil and gas producer in Austria, one of the largest gas storage operators in Central Europe with 5 bn m³ working gas capacity 73.63% # 1 green energy producer in Austria and local gas distributor 13.0% Verbund-Innkraftwerke GmbH 13 run-of-river plants with 312 MW installed capacity (EVN stake: 41 MW) 16.51% Distributor and business-to-business natural gas supplier in Austria EVN at a glance 18

19 EVN at a glance 5. Current contribution to net profit from investments Significant contribution to EVN s profit RAG and Verbund are the main contributors 89.4 EURm Income from RAG increased by ~22% from EUR 60.4m in 2010/11 to EUR 73.5m in 2011/ Contribution from Verbund at prior-year level (2010/11: decrease due to lower dividend payment) /10 10/11 11/12 RAG Energie Burgenland Verbund Others Contribution from Others increased due to impairment for the hydro-power project Ashta (EUR 21.3m) in 2010/11 EVN at a glance 19

20 EVN at a glance 5. RAG Rohölaufsuchungs AG 1) 20 Shareholder structure Revenue breakdown by segments EVN 50.03% EBITDA, EBIT and Net profit EURm E.ON Global Commodities SE 29.98% Steirische Gas- Wärme GmbH 10% Salzburg AG 10% EURm % 22% 23% % 18% 31% 54% 50% % 14% 30% 55% Gas sales Gas storage Oil sales & stockpiling of CER Other revenues EBIT EBITDA Net profit 1) Source: RAG, Annual report 2012 according to IFRS CER = Compulsory Emergency Reserves EVN at a glance 20

21 EVN at a glance RAG Rohöl-Aufsuchungs AG 1) Production statistics 2012 Gas production m m³ Core areas of business Oil and natural gas E&P Natural gas storage Gas sales 2) m m³ Gas reserves m m³ 3,800 Oil production t 117,024 Oil reserves t 900,000 Oil tank storage capacity t 260,000 Natural gas storage Capacity m m³ 5,001 Concessions Austria (5,414 km²) Germany (5,479 km²) Hungary (7,022 km²) Poland (2,951 km²) Romania (1,106 km²) Storage facilities (Salzburg, Upper Austria) Haidach (JV with Gazprom and Wingas; 2,656 m m³) Aigelsbrunn (100 m m³) Puchkirchen (1,080 m m³) 7Fields (1,165 m m³) 1) Source: RAG 2) Sales of produced, swapped and traded gas EVN at a glance 21

22 EVN at a glance 6. Strengthening of liquidity position 22 Capital increase of EVN AG by 10% to EUR 330.0m in October/November 2010 Net proceeds of EUR 175.5m from capital increase Issuance of a corporate bond in October 2011 EUR 300.0m Replacement of existing corporate bond Tenor: 10.5 years, Coupon: 4.25% Issuance of two private placements in March 2012 EUR 100.0m and EUR 25.0m Tenor: 20 years, Coupon: 4.125% Refinancing syndicated revolving credit facility of EUR 500.0m in June 2012 Financial flexibility through committed credit lines of EUR 175.0m (as per 9/30/2012) EVN at a glance 22

23 EVN at a glance 6. Solid capital structure and rating supports 23 7,500 6,000 6, , , % 80% Net debt and gearing ratio: Increase due to ongoing investments in Austria and SEE EURm 4,500 3, % 46.1% 43.9% 3, , , % 40% Equity ratio (%) Rating S&P: BBB+ / stable Moody s: A3 / stable 1,500 20% / / /12 0% EVN aims at preserving a competitive investment grade credit rating Total assets Equity Equity ratio EURm 1,800 1,600 1,400 1,200 1, , , , % 48.2% 49.9% 09/10 10/11 11/12 100% 80% 60% 40% 20% 0% Gearing (%) Net financial debt Gearing EVN at a glance 23

24 EVN at a glance 6. Financial and dividend policy 24 EUR % % 38.7% 100% 80% 60% 40% Payout ratio Financial policy going forward based on selected key ratios (unadjusted): Equity ratio > 40% (9/30/2012: 43.9%) Net debt coverage (FFO) 23% (9/30/2012: 32.2%) Interest cover (FFO) 5x (9/30/2012: 6.2x) /10 10/11 11/12 20% 0% Dividend payout ratio: EVN intends to increase dividend payout ratio up to 40% mid-term and to above 40% longer-term Earnings per share Dividend per share Payout ratio EVN at a glance 24

25 EVN at a glance Debt maturity profile 25 1,200 1, , Issue of a new corporate bond EUR 300.0m (10.5 ys; coupon 4.25%) Redemption of corporate bond (EUR 257.4m) EURm /13 13/14 14/15 15/16 >2016 Issue of private placements EUR 125.0m (20.0 ys; coupon 4.125%) Refinancing of syndicated loan EUR 500.0m (5 ys) Bonds Bank debt Committed bilateral credit lines EUR 175.0m EVN at a glance 25

26 EVN at a glance Development of electricity and primary energy prices 26 Crude oil prices slightly above the prior year Increase of natural gas prices despite gas price revision Slightly falling electricity and coal prices Decrease in prices for CO 2 -emission certificates by almost 50% EVN at a glance 2626

27 EVN at a glance Implementation of strategic goals in 2010/11 and 2011/12 27 Expansion of renewable energy in Lower Austria and abroad Wind: Four wind parks in Lower Austria (54 MW) Kavarna, Bulgaria (16 MW) Hydro: Acquisition of 13% of Verbund-Innkraftwerke GmbH, Bavaria Capacity increase of existing small hydro power plants, Lower Austria Clear majority (70%) in the hydropower project Gorna Arda Start of the trail operations of the first part of Ashta, Albania (26 MW) Photovoltaic/biomass: Expansion of biomass capacity in the home market (> 60 in Austria) Completion of EVN s largest photovoltaic plant in Bulgaria EVN at a glance 2727

28 EVN at a glance Implementation of strategic goals in 2010/11 and 2011/12 28 Key investments in security of supply Start of operation of the natural gas transportation pipeline Südschiene Construction begin of Westschiene in Lower Austria Construction begin of the natural gas grid expansion in Zadar, Croatia First household customers connected to EVN natural gas grid on 6/1/2012 Start-up of the cogeneration plant in Plovdiv, Bulgaria EVN at a glance 2828

29 Outlook 2012/13 Weak economic growth in Europe Ongoing high primary energy prices and low electricity prices Decrease of electricity and natural gas network tariffs in Austria Mild winter mainly in South Eastern Europe Challenging regulatory and politically conditions in Bulgaria Operating results and Group net profit are expected to be below the prior-year level Financial performance Q /

30 EVN at a glance Financial figures 30 EURm 2011/ / / / /08 Revenue 2, , , , ,397.0 EBITDA 1)2) Group net profit 2) Net cash flow from operating activities Investments 3) Balance sheet total 6, , , , ,636.3 Equity 2) 3, , , , ,208.5 Equity ratio 2) 43.9% 46.1% 44.9% 46.7% 48.3% Net debt 2) 1, , , , ,131.3 Gearing 2) 56.5% 49.9% 48.2% 44.1% 35.3% 1) Figure for 2011/12 has been adjusted due to IAS 19 2) Figures for the prior year has been adjusted due to the revisions to IAS 19 3) In intangible assets and property, plant and equipment EVN at a glance 30

31 Agenda 31 EVN at a glance Investments and projects Financial performance Q /13 Financial performance 2011/

32 Investments and projects Investments 1) 32 EURm % 0% 12% 17% % 2% 7% 25% 29% 38% 39% 47% 6% 5% 17% 12% 10% 5% 09/10 10/11 11/12 Strategic Investments and Other Business Environmental Services Energy Supply South East Europe Network Infrastructure Austria Energy Trade and Supply Generation Investments 2011/12 down 25.8% Key investments Wind parks in Lower Austria and Bulgaria Expansion of heat networks and biomass capacities in Lower Austria Construction of Westschiene Expansion of the network infrastructure and replacement of metres in SEE Investments in natural gas network in Croatia Combined cycle heat and power plant in Moscow 1) In intangible assets and property, plant and equipment; Pre consolidation Investments and projects 32

33 Investments and projects Strategy to enlarge wind capacity 33 EVN s focus on Lower Austria 191 MW installed capacities Strong negotiating power vis-à-vis turbine suppliers Wind park IRR (after tax) 7% 8% Generate stable, regulated cash flows on a long-term basis Austrian Green Electricity Act Legal framework until 2011 Amendment 2012 Eastern part of Lower Austria = Attractive on-shore wind region Off-take obligation for new plants at fixed feed-in tariffs (13 years) Eligibility of new renewables projects is subject to annual feed-in tariff constraints Annual constraints too low in the past, creating substantial backlog of readyto-build projects in Austria Legal goal to increase Austrian wind generation capacities from 1,011 MW to 2,000 MW (2020) Increase of annual feed-in tariff constraints to reduce backlog and achieve capacity growth Attractive wind feed-in tariffs 2013: EUR 94.5/MWh One of the most attractive regions in Europe (due to strong wind conditions in the plain Danube and Pannonian area) Lower Austrian Renewables Roadmap 2030 Increase wind generation capacities in Lower Austria from 550 MW to 1,900 MW (2020) and 3,200 MW (2030) 33 Investments and projects 33

34 Investments and projects Windpower plants windparks Gänserndorf west (5 wind turbines) Gänserndorf north (5 wind turbines) Neusiedl / Zaya (5 wind turbines) Prellenkirchen (8 wind turbines) Japons (7 wind turbines) Kettlasbrunn (20 wind turbines) Obritzberg (13 wind turbines) Markgrafneusiedl (10 wind turbines) Tattendorf (8 wind turbines) Pöttelsdorf (4 wind turbines) Glinzendorf (9 wind turbines) 1) Kavarna, Bulgaria (8 wind turbines) Total capacity: 191 MW Electricity for more than 100,000 households 1) 50:50 JV with Wien Energie AG Investments and projects 34

35 Investments and projects Hydropower plants in Lower Austria 35 Total capacity of 291 MW 1) 72 hydropower plants in total 5 storage hydropower plants 67 run-of-river hydropower plants Electricity for some 165,000 households Small-scale hydropower plant Schaldorf River Inn 13% stake in Verbund-Innkraftwerke GmbH Capacity: 41 MW (EVN stake) Schütt Capacity: 2 MW 2,700 households Investments: EUR 9.5m VERBUND 1) Including purchasing rights from hydropower plants along the Danube, Melk, Greifenstein and Freudenau as well as from investment in hydropower plant in Nussdorf, Vienna and Verbund-Innkraftwerke GmbH Investments and projects 35

36 Investments and projects Hydropower plant projects in Albania and Bulgaria 36 Project Ashta on the Drin River 50:50 JV with Verbund Capacity: 50 MW Generation: ~240 GWh p.a. Supply of 100,000 households Concession period: 35 years Start of operations: spring 2013 Project Ashta on the Drin River Gorna Arda 70% EVN stake, 30% NEK River Arda, South Eastern Bulgaria Total capacity: 120 MW 170 MW (depending on particular expansion stage) Generation: ~350 GWh p.a. Total investments: up to EUR 500.0m Start of operations: 2018/19 Investments and projects 36

37 Investments and projects Biomass plants in Lower Austria 37 Total capacity 64 biomass plants in Lower Austria 1.5 million m³ of wood chips Largest supplier of natural heat in Austria Expansion of biomass capacity Steyr (trial operation) Opening of Hagenbrunn (Investments: EUR 3.6m) Opening of Langenlois (Investments: EUR 2.3m) Waidhofen, Aschbach (acquisitions) Amstetten (under construction) Markt Piesting (ground-breaking ceremony) Investments and projects 37

38 Investments and projects Photovoltaic plants in Bulgaria 38 Blatets Start of operations: May 2010 Total capacity: kwp Investments: EUR 3.0m CO 2 savings: 280 t p.a. Trastikovo Start of operations: July 2011 EVN s largest photovoltaic park ~25,000 modules Total capacity: 1,995 kwp Generation: ~2.4 GWh p.a. Investments: EUR 5.0m CO 2 savings: 2,000 t p.a. Investments and projects 38

39 Investments and projects Cogeneration plant in Bulgaria 39 Plovdiv Generation of electricity and heat Start of construction: 2009/10 Start of operations: December 2011 Capacity: Electricity: 50 MW Heat: 54 MW Investments: EUR 50.0m Supply of ~33,600 households Most modern cogeneration plant in the Balkans Increasing the security of energy supplies Investments and projects 39

40 Investments and projects Gas supply in Lower Austria 40 Westschiene Südschiene Südschiene Gänserndorf-Semmering Completion: July 2011 Gas pipeline: ~120 km Investments: EUR 114.0m Westschiene Auersthal-Amstetten Start of construction: June 2011 Completion: 2013/14 financial year Gas pipeline: 143 km Investments: EUR 150.0m Investments and projects 40

41 Investments and projects Gas supply in Croatia 41 Concessions to build and operate a natural gas distribution network on the Dalmatian coast Three counties: Zadar, Split and Sibenik Concession period: 30 years Total pipeline length: 1,450 km ~130,000 households Start of construction: April 2011 (Zadar) First household customers connected to EVN gas grid on 6/1/2012 Investments and projects 41

42 Investments and projects Waste incineration plants 42 Dürnrohr, Lower Austria Line 3 Start of operation: early 2010 Total capacity: 500,000 t p.a. of household residual waste, bulky waste, industrial and commercial waste materials treated State-of-the-art and largest waste incineration plant in Europe Ecologically best possible waste treatment and transportation of waste and residual waste by train Moscow Total capacity: 360,000 t p.a. Investments: EUR 175.0m Start of operation: 2008 EVN operation: 13 years Investments and projects 42

43 Investments and projects Waste incineration plant project 43 Moscow December 2009: Acceptance of a tender to construct another waste treatment plant in Moscow EIA procedure completed Total capacity: 700,000 t p.a. Investments: EUR 575.0m Investments and projects 43

44 International environmental services projects Market entry in Czech Republic and Serbia Wastewater treatment plant in Prague (Investments: EUR 35.0m) Drinking water purification plant in Serbia (Investments: EUR 25.3m) Additional project on Cyprus Fifth project on Cyprus Refitting and expansion of a wastewater purification plant in Larnaca Investments and projects 44

45 Agenda 45 EVN at a glance Investments and projects Financial performance Q /13 Financial performance 2011/12 45

46 Business highlights Biomass district heating plant in Steyr supplies customers with heat and electricity First construction phase of the natural gas transport pipeline Westschiene completed EVN Netz GmbH acquired a 15%-stake in AGGM Austria Gas Grid Management AG Contract awarded for planning and construction of three further wastewater treatment plants in Romania Emission of promissory note loans of EUR 121.5m On-going share buyback programme extended and repurchase volume increased by further 1,000,000 shares Prior-year figures were adjusted due to IAS 19 (2011) Outlook 2012/13: results from operating activities and Group net profit are expected to be below prior-year figures Financial performance Q /13 46

47 Business development 2012/13 EURm Q. 1 +/ in % Revenue EBITDA EBIT Financial results 11.7 Group net profit Net cash flow from operating activities 54.7 Earnings per share EUR Decrease in revenue Energy business: Temperature and economic related drop Environmental Services business: Scheduled completion of large projects in prior year Stable EBITDA and higher EBIT Lower procurement costs for energy Higher other operating income Impairment charge in the prior year Financial results dropped Negative earnings contribution by EconGas Group net profit below prior year Financial performance Q /13 47

48 Prior year adjusted due to IAS 19 (2011) 2011/ /12 +/ EURm (adj.) Personnel expenses EBITDA EBIT Interest expenses Financial results Profit after income tax Group net profit / /12 +/ EURm Q. 1 (adj.) Q. 1 Personnel expenses EBITDA EBIT Interest expenses Financial results Profit after income tax Group net profit /12 (adj.): no impact on Group net profit Change of disclosure of interest component of the provisions for pensions and severance payments between personnel expenses and financial results Q /12 (adj.): slight impact on Group net profit Change of disclosure of interest component of the provisions for pensions and severance payments between personnel expenses and financial results Adjustment due to corridor method Financial performance Q /13 48

49 EBITDA development by segments Generation Energy Trade and Supply Network Infrastructure Austria Energy Supply South East Europe Environmental Services EURm % 11.9 Q. 1 10/ % 50.4% Q. 1 11/12 Q. 1 12/ % 11.9% 12.1% Q. 1 10/11 Q. 1 11/12 Q. 1 12/ % 49.1% 55.4% Q. 1 10/11 Q. 1 11/12 Q. 1 12/ % Q. 1 10/ % 9.2% Q. 1 11/12 Q. 1 12/ % 17.1% 15.7% Q. 1 10/ Q. 1 11/ Q. 1 12/13 70% 60% 50% 40% 30% 20% 10% 0% Margin (%) EBITDA Profit before tax EBITDA Margin Generation: lower electricity production of thermal power plants due to unfavourable market price development and prior year was positively effected by the power request from Germany Energy Trade and Supply: drop in sales of marketed natural gas volumes, price reduction due to lower additional costs for renewable electricity and termination of the cooperation agreement with Begas Network Infrastructure Austria: stable earnings Energy Supply SEE: tariff adjustments Figures for 2011/12 have been adjusted due to IAS 19 Financial performance Q /13 49

50 Generation Electricity generation 2012/13 +/ volumes GWh Q. 1 in % Total Renewable energy sources Thermal energy sources Financial performance EURm Revenue EBITDA EBIT 10.0 Lower generation volumes Production decline from thermal power plants Increase from renewable energy sources Lower revenue Reduction in the option value of thermal power plants In the prior year positive effect by the power request by the German Federal Network Agency EBITDA decrease and EBIT increase Impairment charge in the prior year Financial performance Q /13 50

51 Energy Trade and Supply End customer price adjustments 1) Natural gas 4/1/ % 10/1/ % Electricity 1/1/ % Sales volumes to 2012/13 +/ end customers GWh Q. 1 in % Electricity 2, Natural Gas 2, Heat Financial performance EURm Revenue EBITDA EBIT Diverse sales volumes development Lower natural gas: economic weakness and improved energy efficiency Higher electricity: business extension of EAA outside of Austria Revenue drop Decrease in sales of marketed natural gas volumes Price reduction due to lower additional costs for renewable electricity EBITDA and EBIT decrease Financial results influenced by EconGas 1) Average, household sector (source: EVN) Financial performance Q /13 51

52 Network Infrastructure Austria Tariffs adjustments 1) Electricity 1/1/2012 Natural gas 1/1/ % Network distribution 2012/13 +/ volumes GWh Q. 1 in % Electricity 2, Natural Gas 4, Financial performance EURm Revenue EBITDA EBIT Diverse distribution volumes development Electricity: slight increase Natural gas: decline due to weaker demand from industrial customers and further reduction in use of EVN s thermal power plants Revenue drop Decrease in other revenue due to a decline in invoiced customer projects EBITDA and EBIT improvement 1) Average, according to the regulator in Austria (E-Control) 2) Including network sales to EVN s power stations Financial performance Q /13 52

53 Energy Supply South East Europe End customer price adjustments 1) Bulgaria electricity 7/1/ % heat 4/1/ % 7/1/ % Macedonia 1/1/ % 2) 8/1/ % 2) Key energy business 2012/13 +/ indicators GWh Q. 1 in % Electricity net. distribution volumes 3) 3, Heat net. distribution volumes Electricity generation volumes Financial performance EURm Revenue EBITDA EBIT ) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC) 2) EVN Macedonia 3) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes Higher electricity generation Start of production of the new co-generation plant in January 2012 Weather-related drop in sales volumes Prior year: extremely cold Revenue increase Tariff adjustments Increase of EBITDA and EBIT Despite higher prices for procured electricity, especially the additional costs related to renewable energy Higher write-offs of receivables Financial performance Q /13 53

54 Environmental Services Financial performance EURm 2012/13 Q. 1 +/ in % Revenue EBITDA EBIT Financial results 2.8 Profit before income tax Lower revenue Completion and invoicing of large projects in the prior year EBITDA and EBIT decrease Financial results up from EUR 0.7m Higher income from investments ZOV and ZOV UIP, Croatia New contract awarded Three wastewater treatment plants in Romania Financial performance Q /13 54

55 Financial results Q. 1 12/13 Q. 1 11/12 Q. 1 10/11 EURm , Income from investments in equity accounted investees Gain from other investments Total interest results Total other financial results Financial results: EUR 11.7m EconGas EUR 20.4m High negative spread between longterm, oil-based natural gas purchases and hub price linked sales Recognition of a provision for impending losses on contractually agreed, longterm transport and LNG capacity bookings Financial performance Q /13 55

56 Cash flow 2012/13 EURm Q. 1 +/ in % Gross cash flow Net cash flow from operating activities 54.7 Net cash flow from investing activities Net cash flow from financing activities Net change in cash and cash items 30.9 Q. 1 11/12 Q. 1 12/13 EURm Higher gross CF Lower non-cash share of income of equity accounted investees Increase of net CF from operating activities Weather-related lower y-o-y increase in working capital Change of net CF from investing activities Investment in short-term securities Capital payment for investments in equity accounted investees Increase of net CF from financing activities Issue of promissory note loans Cash flow from operating activities Investments in intangible assets, property, plant and equipment Financial performance Q /13 56

57 Investments 1) EURm % 1% 8% 4% 54% 26% 50% 34% 3% 5% 4% 8% Q. 1 11/12 Q. 1 12/13 Strategic Investments and Other Business Environmental Services Energy Supply South East Europe Network Infrastructure Austria Energy Trade and Supply Generation Investment volume Roughly on prior-year level Investment focus Expansion of windpower capacity Expansion of district heating networks Construction of Westschiene Expansion of the network infrastructure and replacement of metres in SEE 1) In intangible assets and property, plant and equipment Financial performance Q /13 57

58 Agenda 58 EVN at a glance Investments and projects Financial performance Q /13 Financial performance 2011/

59 Business highlights Expansion of windpower capacity in Lower Austria and Bulgaria Expansion of natural heat power capacity Enlargement of hydropower plants assets in Lower Austria and Albania Completion of the first construction phase of the natural gas transport pipeline Westschiene New co-generation plant in Plovdiv put into operation Environmental Services business: contracts awarded in Prague (CZ), in Serbia and on Cyprus Consolidation of investments in South Eastern Europe Optimising financial flexibility: Refinancing and emission of bonds and credit facilities Financial performance 2011/

60 Business development EURm 2011/12 +/ in % Revenue 2, EBITDA 1) EBIT 1) Financial results 1) Group net profit Net cash flow from operating activities Earnings per share Dividend EUR Weather-related revenue development Energy business: Historically coldest winter and higher end customer prices in SEE Environmental Services business: Lower project implementation volume EBITDA and EBIT on prior-year level Higher procurement costs for energy Provision for impending losses Adjustments due to IAS 19 (EUR +16.5m) Decrease of financial results Adjustments due to IAS 19 (EUR 16.5m) 1) Figure has been adjusted due to IAS 19 (EBITDA/EBIT EUR +16.5m; Financial results EUR 16.5m) Group net profit above prior year Financial performance 2011/

61 EBITDA development by segments 1) EURm % 52.5 Generation 33.1% % Energy Trade and Supply 4.8% % % Network Infrastructure Austria % 40.0% 40.2% Energy Supply South East Europe % % 11.2% Environmental Services 18.3% % 23.5% 09/10 10/11 11/12 09/10 10/11 11/12 09/10 10/11 11/12 09/10 10/11 11/12 09/10 10/11 11/ % 60% 50% 40% 30% 20% 10% 0% Margin (%) EBITDA Profit before tax EBITDA Margin Generation: power request on the part of the German Federal Network Agency; revision in natural gas price between Gazprom and EconGas; new wind park capacities Energy Trade and Supply: Reduced marketing of own thermal power plants; passing on of reduced natural gas procurement costs and lower additional costs for renewable electricity to end customers Energy Supply SEE: historically coldest winter and higher end customer prices 1) Figures for 2011/12 have been adjusted due to IAS 19 (EBITDA/EBIT EUR +16.5m; Financial results EUR 16.5m) Financial performance 2011/

62 Generation Electricity generation volumes GWh 2011/12 +/ in % Total 2, Thermal energy sources 1, Renewable energy sources 1, Financial performance EURm Revenue EBITDA 1) EBIT 1) 14.8 Reduced use of EVN s own thermal power stations Negative spreads for gas-fired power plants Higher revenue Higher wind and hydropower production coefficients and volumes Power request by the German Federal Network Agency Gas price revision between Gazprom and EconGas EBITDA and EBIT increase Impairment losses EUR 8.0m, biomass pilot plant in Dürnrohr EUR 9.8m, wind park Kavarna in Bulgaria 1) Figure has been adjusted due to IAS 19 Financial performance 2011/

63 Energy Trade and Supply End customer price adjustments 1) Natural gas 4/1/ % 1) Average, household sector (source: EVN) 2) Figure has been adjusted due to IAS 19 10/1/ % Electricity 1/1/ % Sales volumes to end customers GWh 2011/12 +/ in % Electricity 7, Natural Gas 6, Heat 1, Financial performance EURm Revenue 1, EBITDA 2) EBIT 2) Diverse sales volumes development Natural gas: decrease due to reduced use of EVN s own thermal power plants and lower sales volumes to end customers Electricity: increase due to business extension of EAA outside of Lower Austria Heat: at prior-year level Revenue drop Decline in marketing proceeds of EVN s own thermal power plants Declined end customer price for electricity and adjustments in natural gas prices EBITDA and EBIT decrease Higher procurement volumes and prices Higher provisions for impending losses Financial performance 2011/

64 Network Infrastructure Austria Tariff adjustments 1) Electricity 1/1/2012 Natural gas 1/1/ % Network distribution volumes GWh 2011/12 +/ in % Electricity 7, Natural Gas 15, Financial performance EURm Revenue EBITDA 2) EBIT 2) ) Average, according to the regulator in Austria (E-Control) 2) Figure has been adjusted due to IAS 19 Diverse distribution sales volumes Electricity: at the prior-year level Natural gas: drop due to reduced use of EVN s own thermal power plants and higher temperature Adjustment of network tariffs EBITDA above prior-year level Adjustments due to IAS 19 EBIT increase Change in the reporting of non-invoiced customer orders Higher personnel expenses Adjustments due to IAS 19 Financial performance 2011/

65 Energy Supply South East Europe End customer price adjustments 1) Bulgaria electricity 7/1/ % 7/1/ % heat 4/1/ % 7/1/ % Macedonia 1/1/ % 2) 8/1/ % 2) Temperature-related sales volumes increase Historically coldest winter, temperaturerelated sales volumes increase BG: heating degree +22.0%p MK: heating degree +19.6%p Network distribution volumes GWh 2011/12 +/ in % Electricity 3) 13, Heat Financial performance EURm Revenue EBITDA 4) EBIT 4) ) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC) 2) EVN Macedonia 3) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes 4) Figure has been adjusted due to IAS 19 Revenue increase Higher sales volumes Higher electricity price for end customers Increase of EBITDA and EBIT Higher prices for procured energy, especially the additional costs related to renewable energy Increased write-offs of receivables Financial performance 2011/

66 Environmental Services Financial performance EURm 2011/12 +/ in % Revenue EBITDA 1) EBIT 1) Financial results 1) Profit before income tax Lower revenue Lower project implementation volume EBITDA and EBIT increase Financial results slightly above the prioryear level New contracts awarded Wastewater treatment plant in Prague (CZ) (turn-key project) Drinking water treatment plant in Serbia Wastewater purification plant on Cyprus 1) Figure has been adjusted due to IAS 19 Financial performance 2011/12 666

67 Financial results 1) 11/12-1, Financial results decreased Adjustments due to IAS 19 10/11 09/ Higher income from investments in equity accounted investees Higher contribution by RAG Impairment of Ashta in the prior year EURm Income from investments in equity accounted investees Gain from other investments Total interest results Total other financial results Lower interest results Higher interest expenses Time overlap of two EUR-bonds Higher net debt Lower interest income in the international project business 1) Figures 2011/12 have been adjusted due to IAS 19 (EBITDA/EBIT EUR +16.5m; Financial results EUR 16.5m) Financial performance 2011/

68 Solid capital structure and rating support Financial performance 2011/

69 Cash flow EURm 2011/12 +/ in % Cross cash flow Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash and cash items /11 11/12 EURm Cash flow from operating activities Investments in property, plant and equipment and intangible assets Higher gross CF Decline in non-current provisions in prior year Lower non-cash earnings components Decrease of net CF from operating activities Reduction in funds tied up in working capital Change of net CF from investing activities Lower investments in intangible assets and property, plant and equipment Capital payment for investments in equity accounted investees (Ashta, Devoll, Walsum, EVN Bulgaria EP and EC) Financial performance 2011/

70 Additional information Stefan Szyszkowitz CFO Phone: Fax: Investor information on the web Gerald Reidinger Head of Finance and Investor Relations Phone: Fax: EVN AG Headquarters EVN Platz 2344 Maria Enzersdorf 7070

71 Disclaimer Certain statements made in this presentation may constitute Forward- Looking Statements within the meaning of the U.S. federal securities law. Forward-looking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts. The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN s management based on factors currently known by it. No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved. For additional information regarding risks, investors are referred to EVN s latest Annual report. 71